Hey, Let’s Undermine America’s Technology, Education and Research!
By Paul Krugman, September 22, 2025
In recent years, it increasingly appears that former President Donald Trump and his associates have embarked on a concerted effort to diminish America’s global leadership across critical sectors. From technology and education to research and innovation, policies implemented under Trump’s administration are actively undermining the foundations that have long sustained U.S. economic dominance.
Eroding Trust and Rule of Law
One cornerstone of America’s economic appeal has been the rule of law. This framework assured businesses, domestic and foreign alike, that property rights would be respected and contracts enforced fairly. Yet, under Trump’s leadership, a worrying trend emerged: the government began coercing ownership stakes in corporations and deploying covert agents to detain foreign workers. Reports of foreign nationals being seized, shackled, and held in deplorable conditions sent shockwaves through international communities, shaking investor confidence and undermining America’s reputation as a trustworthy destination for talent and capital.
The Assault on Science and Research
Scientific progress in the United States has thrived due to its unparalleled research universities and respected government entities like the National Institutes of Health (NIH). These institutions have been instrumental in pioneering breakthroughs that drive innovation and public health worldwide. However, the Trump administration’s approach has been deleterious, aiming to eviscerate funding and support for both academia and government-led research initiatives. The resulting uncertainty and decline in resources threaten to derail decades of progress.
Technology: The Engine of Economic Success
America’s economic ascendancy is intimately tied to its command of digital technology. For decades, tech industries have propelled GDP growth, job creation, and global competitiveness. Central to this success is the H-1B visa program—a mechanism allowing talented professionals from across the globe to contribute their skills to universities, research laboratories, and tech companies. These skilled foreign workers have been indispensable to sustaining America’s innovation ecosystem.
A Fee That Shook the Foundations
In a move emblematic of the administration’s wider agenda, the White House abruptly introduced a $100,000 fee for H-1B visa holders. The announcement, issued without prior warning, triggered widespread panic across industries and cities reliant on highly skilled immigrants. Workers, employers, and even governments scrambled to respond, with some foreign workers advised against traveling abroad for fear of not being allowed back. The chaos reached a surreal peak when passengers on a flight from San Francisco to Dubai demanded to disembark after hearing the news.
The administration soon sought to contain the fallout, clarifying via social media platform X (formerly Twitter) that the fee was a one-time charge and exempted current visa holders. These clarifications, not officially documented in government channels, added to the confusion and uncertainty.
Legal Challenges and Questionable Authority
Legal experts, including Aaron Reichlin-Melnick of the American Immigration Council, have raised serious doubts about the administration’s authority to impose such a fee. Lawsuits challenging the policy were already underway at the time of writing, although the outcome remains uncertain. Given the current inclination of the Supreme Court to defer to executive prerogatives, there is concern that this extralegal overreach may be left unchecked.
Economic Consequences of Restricting Talent
From an economic perspective, restricting access to the H-1B program is shortsighted and self-damaging. The presence of highly educated foreign workers boosts GDP and, by extension, tax revenues that sustain essential programs like Social Security and Medicare. Additionally, increasing the supply of highly skilled workers helps to reduce income inequality by balancing the labor market between high- and low-education earners.
The tech sector also benefits uniquely from what economists call "positive externalities." Successful tech enterprises not only thrive individually but also foster an environment where innovation flourishes across the board. This dynamic explains the concentration of tech companies in hubs like Silicon Valley, where a deep network of complementary businesses, venture capital firms, and skilled labor pools creates a virtuous circle of growth and opportunity.
The Marshallian Trinity and Industrial Localization
Economists refer to these reinforcing factors—industry clustering, knowledge spillovers, and a specialized labor market—as the “Marshallian trinity,” named after economist Alfred Marshall. These forces have made Silicon Valley a global tech powerhouse and similarly energize leading research universities such as MIT, Stanford, and Harvard. The success of top-tier institutions and research agencies depends heavily on attracting the world’s best minds—many of whom come as H-1B visa holders.
Historical Lessons: Refugees and Innovation
America’s ascendancy in science during the mid-20th century owed much to an influx of immigrant scholars, including refugees fleeing Nazi persecution. These individuals contributed vitally to projects ranging from the Manhattan Project to the space race, underscoring the long-standing bond between openness to global talent and national achievement. The administration’s current policies starkly contrast with this legacy.
Misunderstanding the Tech Economy
The recent H-1B policy reflects an alarming misunderstanding of how technological industries operate. Contrary to the administration’s assumptions—perhaps influenced by advisers like Stephen Miller or Steve Bannon—the viability of high-tech jobs does not exist in a vacuum. They cannot simply be seized from foreign workers and handed to native-born Americans without damaging the ecosystem that sustains those jobs.
Open-Ended Authority and Risks of Corruption
Moreover, the visa proclamation grants the Secretary of Homeland Security sweeping discretion to waive fees or restrictions selectively, based on nebulous criteria such as national interest and security considerations. This open-ended authority creates fertile ground for corruption and political favoritism. The potential for extortion—holding workforce stability hostage in exchange for political or financial favors—is a disturbing prospect.
A Call for Rational Reform
There is room for reasonable criticism and improvement of the H-1B program, especially concerning details and administration. Nevertheless, the Trump administration’s aggressive dismantling of it serves no constructive purpose. Instead, it chips away at one of the fundamental pillars underpinning America’s technological and intellectual supremacy.
Conclusion
America’s future economic vitality depends on its ability to foster innovation, attract global talent, and maintain robust educational and research institutions. Policies that alienate the best and brightest, create legal chaos, or politicize immigration risk unraveling the very fabric of American greatness. If America is to remain a leader on the world stage, it must resist such self-destructive impulses and recommit to the principles that have sustained its success for generations.
Paul Krugman is a Nobel Prize-winning economist and columnist. This article originally appeared on his Substack.
